Iveco Group NV’s Earnings Call: Mixed Sentiments and Strategic Focus

Iveco Group NV ((IT:IVG)) has held its Q3 earnings call. Read on for the main highlights of the call.

The recent earnings call of Iveco Group NV presented a mixed sentiment, balancing between optimism in certain segments and challenges in others. The company showcased strong performance in its bus and powertrain segments, with promising recovery signs in engine volumes and a robust order book. However, it also faced significant hurdles in the truck segment, particularly with light commercial vehicles, leading to an overall decline in financial performance. This dual sentiment reflects a strategic focus on long-term growth amidst current operational difficulties.

Bus Segment Performance

The bus segment emerged as a strong performer in the third quarter of 2025, with net revenues soaring by 31.4% and deliveries increasing by 20% compared to the same period in 2024. Iveco Bus successfully maintained its position as the second-largest player in the European market, holding a 21.3% market share year-to-date. This growth underscores the segment’s resilience and strategic importance to the company’s portfolio.

Powertrain Segment Recovery

The powertrain segment showed the first signs of recovery after nearly two years of decline, with engine volumes increasing by 1% compared to Q3 2024. This positive development was bolstered by new third-party customer contracts with Lindner and JCB, indicating a potential turnaround in this critical segment.

Order Book Strength

Iveco’s order book remains robust, highlighted by a significant framework agreement with Ildefrance Mobility. This agreement involves the delivery of up to 4,000 low and zero-emission buses and coaches between 2026 and 2032, reflecting the company’s commitment to sustainable and innovative transportation solutions.

Efficiency Program Acceleration

The company’s efficiency program is on track to deliver substantial savings, with expectations of EUR 150 million in savings for the current year. Additional areas for improvement have been identified, promising further cost reductions and operational efficiencies in the future.

Truck Segment Challenges

The truck segment faced considerable challenges, with net revenues totaling EUR 2 billion in Q3 2025, marking an 11% decline from the previous year. This downturn was primarily attributed to lower delivery rates in light-duty trucks and a challenging environment in the chassis cab subsegment.

LCV Market Decline

The European market for light commercial vehicles (LCVs) experienced a significant decline, with deliveries down 27% year-over-year. This decrease has adversely affected profitability within the truck segment, posing a challenge for Iveco’s broader financial performance.

Financial Performance Decline

Iveco’s consolidated net revenues contracted by 3.6% year-over-year, with the adjusted EBIT margin of industrial activities shrinking by 210 basis points compared to Q3 2024. This decline reflects the broader challenges faced by the company, particularly in the truck segment.

Medium and Heavy Truck Order Decline

The order intake for medium and heavy trucks in Europe declined by 3% year-over-year, with a book-to-bill ratio of 0.82, indicating a softer demand environment. This trend poses additional challenges for Iveco as it navigates a competitive and evolving market landscape.

Forward-Looking Guidance

Looking ahead, Iveco Group NV has provided guidance for 2025, projecting adjusted EBIT between EUR 830 million and EUR 880 million, despite an expected decline in industrial net revenues by 3% to 5% year-over-year. The company remains committed to its efficiency program, targeting EUR 150 million in CapEx and OpEx savings. Additionally, the anticipated completion of its defense business sale by the first half of 2026 is expected to streamline operations and focus on core segments.

In summary, Iveco Group NV’s earnings call reflected a balanced sentiment, with strong performances in the bus and powertrain segments countered by challenges in the truck segment. The company’s strategic focus on efficiency and innovation, alongside its robust order book, positions it for potential long-term growth despite current operational hurdles.